Danish rigid food packaging supplier Faerch has agreed to acquire Germany-based dairy packaging firm PACCOR Packaging for an undisclosed sum.
The company will acquire PACCOR from its current owner, New York-based investment firm Lindsay Goldberg.
PACCOR provides integrated packaging solutions for the food industry, including yoghurt, spreads and ice cream packaging, as well as other selected sectors.
The company currently has operations in 18 countries.
Under the terms of the deal, Faerch will take over PACCOR’s 16 production sites in Europe, Asia and the US, as well as its workforce of more than 3,400 employees.
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The addition is intended to help Faerch convert materials to create sustainable packaging solutions in the European dairy sector.
Faerch said that the deal is in line with the company’s long-term growth plan.
Faerch Group CEO Lars Gade Hansen said: “With PACCOR’s strong position in the dairy sector, our complementary geographical footprints and our shared ambition to make food packaging circular, PACCOR is the perfect match for Faerch.
“We look forward to welcoming all of our new highly skilled colleagues to the Group.
“With PACCOR becoming part of Faerch, the industry’s transition towards circularity will gain additional momentum for food packaging being recycled back into new food packaging of the same quality again and again.”
The deal is subject to customary closing conditions and regulatory approval.
It will increase Faerch’s total number of production sites to 34 and its workforce to almost 6,000 people worldwide.
Credit Suisse, Plesner Law Firm, EY, Skadden Law Firm and COWI served as advisors to Faerch Group for the transaction.
Lindsay Goldberg will retain PACCOR’s UK business, including two of its production sites.
PACCOR was previously known as Coveris Rigid until it was acquired by Lindsay Goldberg in 2018.
Last September, the company began testing fully biobased polypropylene products together with consumer goods brand Orkla.